Pune, Apr 4 (UNI) The future lies in small towns and rural sectors where infrastructure projects, healthcare and education hold promise for private equity investors, who are now looking beyond metros.
This was observed by India Value Fund Advisors Partner George Thomas after a workshop of venture capitalists ''VC Circle Growth Capital Forum''. Talking to UNI, he said contrary to earlier beliefs there is tremendous availability of disposable incomes and funds in small towns.
Investors can look for tremendous growth in small towns for the next twenty years at least. The investors are looking at investing in mid size companies for better governance, better human resources and ensuring quality.
When asked about impact of US recession a threat or an opportunity for VC's/PE's fund flows to India, Mr Thomas said there were enough resources and instruments for the market to remain fairly stable. ''We have had a growth of minimum six per cent for the past 15 years and since 2005 it is between 7to 9 per cent. Even if the US is facing a recession, there is the European market, Singapore and Middle East where investors have not lost confidence in us,'' he said, adding that the impact of the stock market on unlisted PE players is good.
The Indian private equity and venture capital presently is all about growth capital investing, Mr Thomas said.
India Value Fund (IVF) formerly GW Capital was established in 2000 and is a private equity fund manager in India. IVF is currently investing its third fund and manages 600 dollar million capital across its three funds.
UNI DWN NM SKB1843